imcrookonit
Ex Member
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COMMONWEALTH Bank chief Sir Ralph Norris has pleaded with customers not to vent their rage on branch staff following the bank's decision to jack up mortgage rates.
He said staff had been spat on, verbally abused and threatened with violence after the bank moved to lift its standard variable mortgage rate by 0.45 percentage points.
"I find it somewhat despicable that people would treat people so badly," he said.
"If people want to abuse me, or send aggressive letters or make aggressive phone calls, do it to me. Don't do it to people who have not played a part in the decision."
The appeal came as Sir Ralph signalled in a staff memo - the bank might have been forced to axe jobs if it didn't lift borrowing rates.
"The alternative to making these changes would mean that we would have to seriously look at other options to reduce costs, such as curtailing services," it said.
The memo warns that even after the rate hike, the bank's profit margins "are still lower than they were going into the (global financial) crisis".
The Commonwealth Bank, Australia's biggest mortgage lender, sent shockwaves through the mortgage belt when it announced a 0.45 per cent rate rise on Melbourne Cup Day - just minutes after the Reserve Bank put up official rates by just 0.25.
The Commonwealth hike will add $1050 in annual repayments to a $300,000 loan.
Returning yesterday from a five-day business trip through Asia, Sir Ralph launched a charm offensive in a bid to repair the Commonwealth Bank's battered brand.
He dismissed speculation he had been out of the country to avoid the spotlight, saying he flew out on Sunday for back-to-back meetings booked months in advance with business and political leaders in Hong Kong and China.
Sir Ralph defended the rate rise, saying that seven in every 10 home loan customers would not be affected and special assistance programs were available to those suffering mortgage stress.
The cost of the funds borrowed by the bank to lend to consumers were continuing to rise, he explained.
"And it's fair to say that we are still absorbing more of the cost than we've been able to recover," he said.
Despite the bank's record annual cash profit of $6 billion, its profit margin was small when its stockbroking and wealth management divisions were stripped out.
Sir Ralph also defended his $16 million pay package, saying that it was based on a string of long-term hurdles and "the odds are that I won't get those numbers".
He acknowledged he was paid a "significant amount of money", but said: "I don't determine my pay. I'm asked to do a job. I'm rewarded based on market metrics."
Comments on this story
* Fred Bloggs of Castlemaine Posted at 7:59 PM November 05, 2010
He's financially secure ($16M) but morally bankrupt
* Jimbob of Adelaide Posted at 7:59 PM November 05, 2010
It was greed that killed the goose that laid the golden egg. And the banks are in danger of doing it to the consumer.
* Credit Union for me of Waverly Posted at 7:57 PM November 05, 2010
So the Australian people who helped you and the others of the banking sector out of the Finnacial crisis still have to pay whilst all four of the big four banks make multi billion dollar profits. How about you repay the Australian people who enabled you to achive your record results which went some way to enable you to get your $16million dollar salary. As for not taking your decision out on frontline staff please post your contact details so that the Australian public can get in contact with you to let you know just how they feel
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